Xten Networks, Inc. Announces Filing of Quarterly Report

Santa Clara, CA — December 6, 2004 —

Xten (OTCBB: XNWK), a provider of VoIP [Voice over IP], Video over IP, Instant Messaging, and Presence SIP softphones, today reported record revenues for the quarter ended October 31, 2004 of $677,364 compared to $487,151 for the quarter ended July 31, 2004, a 39% revenue increase quarter-over-quarter.

Financial Highlights for the Second Quarter 2005

Financial Highlights for the First Six Months 2005

The Company's Quarterly Report on Form 10-QSB including consolidated balance sheet and statement of operations for the second quarter of fiscal 2005 – the three month period ended October 31, 2004 – was filed and is available for viewing at www.sec.gov.

“Our performance of the recent quarter is in line with our expectations for the upcoming year, both financially and strategically,” said Mark Bruk, chief executive officer of Xten Networks, Inc. “Our established products continued to perform very well during the quarter and we are experiencing significant interest in our latest product release, eyeBeam. With product now in over 20 countries we expect that we can continue to increase our market share,” added Bruk.

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.