Xten Delivers VoIP, Video, Instant Messaging and Presence over 3G UMTS at CTIA Wireless I.T.

Today Xten teamed up with existing partner Vonage to demonstrate some of the newest features in their SIP softphone eyeBeam

Santa Clara, CA — October 27, 2004 —

Xten (OTCBB: XNWK), a provider of VoIP (Voice over IP) and Video over IP SIP softphones, today demonstrated new features including Instant Messaging and Presence, at CTIA Wireless I.T. & Entertainment (www.wirelessit.com), over a 3G UMTS network using the Vonage service.

"Xten and Vonage already have a great relationship and we thought the CTIA show would be a great place to show off Xten's new IM and Presence using the Vonage service on a 3G network," commented Erik Lagerway, president and COO of Xten. "3G networks will provide for ubiquitous wireless IP communications, soon you will be able to take your Xten softphone and the Vonage service anywhere, to me that is very exciting!"

eyeBeam is a full featured, open standards, SIP softphone used for VoIP and Video over IP. The new features that users can look forward to, and are being demonstrated here at CTIA, include Instant Messaging and Presence Awareness using open standards like SIMPLE and XCAP. Xten will also be demonstrating interoperation with some more popular Instant Message platforms like Microsoft Windows Messenger at CTIA.

"Vonage constantly seeks to expand its service offering and provide its customers with the latest innovations," said Michael Tribolet, EVP Operations of Vonage. "Our partnership with Xten helps us deliver on this promise and answer the growing need for our customers to use their Vonage service from any access point, wired or wireless."

About Vonage®

Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage's service area encompasses more than 1950 active rate centers in over 125 North American markets. Vonage is sold directly through www.vonage.com and retail partners such as Amazon.com, RadioShack, Best Buy, Circuit City, Staples and Office Depot. Wholesale partners such as EarthLink, ARMSTRONG®, Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 300,000 lines in service, Vonage continues to add more than 25,000 lines per month to its network. Over 5 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit www.vonage.com or call 1-VONAGE-HELP. Vonage®, Vonage Digital VoiceTM, Toll Free PlusSM and Virtual Phone NumberSM are trademarks of Vonage Holdings Corp.

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.