VoIP at 40,000 Feet

Klaus Schulz makes history by making the first ever VoIP calls on a Connexion by Boeing® equipped Lufthansa® flight using an Xten SIP Softphone

Santa Clara, CA — July 29, 2004 —

Xten (OTCBB: XNWK) today announced that VoIP history was made when Klaus Schulz, a former 3COM® Chief Technology Architect, boarded Flight 452 from Munich to Los Angeles on May 17th. Mr. Schulz did not know that he was going to make history on that day; however, he knew that he was going to be able to use the Internet on Lufthansa's first commercial flight with the very much touted new service from Connexion by Boeing.

At a cruising altitude of 40,000 ft., Klaus opened his browser and began surfing the web at broadband speeds. But Mr. Schulz's most remarkable connection on that flight was the first-ever VoIP calls using his laptop, Xten's softphone and the free SIPphone service [www.SIPphone.com].

"After testing just about all the SIP softphones out there," Klaus explained "I kept the Xten SIP phone on my desktop, because it was the only SIP phone I could actually take with me when I travel. It was just there on my notepad's computer desktop waiting for me."

"It was awesome! Unbelievable! Had no one else discovered this wonder of technology on board?" was Schulz's reaction to the surprising discovery, "I started to dial up and talk to my friends and co-workers as if I was in my office, with the same crisp and crystal clarity I am used to on the ground."

The surrounding passengers almost spilled their coffee, when they started to hear Klaus talk back to his computer, and flooded him with questions in between calls.

Xten's softphones put a full featured telephone on your computer desktop. Both the feature-rich X-PRO and the free X-Lite versions are available for PC, Pocket PC, Mac, and Linspire.

"This is very exciting! I spend a great deal of time on commercial flights and for the most part, my time is wasted because on land I live on the Internet," explained Erik Lagerway, President and Chief Operating Officer of Xten. "Now I can make and receive phone and video calls, use my email and Instant Messenger, all for the price of the in-flight Internet Access. Well worth the $30!"

About Klaus Schulz

With over 15 years experience in the high technology and information technology industry, Klaus has a distinguished history of initiating, developing and promoting new business via leading-edge technologies. Klaus has spent the last four years in the business development role of several US entry and startup companies. His last major accomplishment was as the Chief Wireless Officer for helloNetwork.com, a Streaming Media Company that was reorganized to enter into the lucrative Japanese mobile devices market and reach accords with major Japanese Trading Companies and Telco's. Prior to helloNetwork.com, Klaus was the Chief Technology Architect for 3COM Corporation in Santa Clara, California where he was instrumental in bringing together and integrating the information infrastructures of US Robotics and 3COM to function as one unified company in just a few short weeks. This technological success repeated itself when 3COM spun off the PALM division into its own company with the IPO of Palm in March of 2000. This applied strategy was documented and widely publicized and has helped hundreds of companies as an IT roadmap to overcome M&A difficulties and problems. Klaus became a public speaker at worldwide middleware and e-business conferences to share his successful methodologies and implementation strategies in the M&A integration industry and has a respected competence for the EAI integration space. Klaus serves corporate board level mandates on several Technology Advisory Boards and has an engineering degree from San Jose State.

About Xten®

Xten Networks, Inc. is a provider of award-winning, high-quality, carrier-grade SIP-based Voice and Video over IP software and softphones. Xten's goal is to be the primary choice in SIP-based client-side audio and video IP communications software for Telecoms, Cable Providers, Internet Telephony Service Providers and OEMs.

Those who are interested in Xten products should visit http://sales.xten.com On the Web: www.xten.com Visit Erik Lagerway's blog: www.sipthat.com