Warrants Exercised by Xten Shareholder

Santa Clara, CA — November 8, 2004 —

Xten (OTCBB: XNWK), a provider of VoIP (Voice over IP), Video over IP, Instant Messenger & Presence aware SIP softphones, today announced that it has recently issued 500,000 common shares at $2.00 per share for cash proceeds of $1,000,000, upon the exercise of the warrants that were issued in a private placement which was completed on April 30, 2004. In that private placement, the Company issued 1,000,000 units at $1.00 per unit for cash proceeds of $1,000,000. Each unit consisted of one common share and one-half share purchase warrant. Each full share purchase warrant entitled the holder to purchase an additional common share at $2.00 per share.

The securities issued on exercise of the warrants and in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act of 1933.

About Xten Networks, Inc.

Xten is a developer of award-winning, high-quality, carrier-grade VoIP (Voice over IP) and Video over IP SIP 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.