Xten receives TMC Labs 2003 Innovation Award for X-PRO

Vancouver, BC, Canada — June 23, 2003 —

Xten Networks, Inc. announced today that Xten's flagship product X PRO was awarded the prestigious TMC Labs® Innovation Award for 2003, which will be published in the July issue of Internet Telephony® magazine. "Xten Networks has released a feature-rich SIP softphone called X PRO that includes features that TMC Labs has not seen in other open SIP clients," Internet Telephony magazine.

TMC Labs reviewed approximately 200 applications before selecting Xten and a handful of other companies all of which TMC Labs felt demonstrated the vision, leadership and attention to detail that are the hallmarks of an Innovation Award recipient.

"The companies selected to receive a TMC Labs Innovation Award for 2003 have taken a decisive leadership role and are driving the continued growth of IP telephony. We're proud to reward their hard work and innovation," said Tom Keating, Executive Technology Editor of TMC Labs.

According to Rich Tehrani, TMC's President and Group Editor-in-Chief, the award not only recognizes outstanding achievement, but also serves as a 'who's who' for potential IP telephony customers to reference when seeking solutions.

"Our team has done an amazing job evaluating the marketplace and designing and delivering, on time and on budget, premium products which are exceeding the expectations of our customers and their end users," states Mark Bruk, CEO of Xten Networks, Inc. "Under the leadership and guidance of our COO Erik Lagerway and our CTO Robin Raymond, who together received TMC Labs 2001 Innovation Award, Internet Telephony magazine's 2001 Product of the Year Award and Editor's Choice Award, and Customer Inter@ction Solutions' 2001 Product of the Year Award for previous work, we know this will be the first of many such awards."

Xten's VoIP Softphones for Windows & PocketPC are based on SIP [Session Initiation Protocol] and are compatible with the majority of SIP VoIP networks. The Xten family of SIP Softphones includes X-Lite, X-PRO and X.NET and will soon be joined by X Cipher. X-Lite is free and includes all the features found in a standard business telephone. X PRO is a premium SIP Softphone with all the features and functionality of a small business phone system, all for only $50. X.NET is a software development kit (SDK) for X-PRO, which integrates advanced features of X PRO into 3rd party applications. X-Cipher is all that X-PRO is plus encryption and firewall tunneling. To find out more about Xten products, please visit our web site located at http://www.xten.com.

About TMC™

Since its inception in 1972, Technology Marketing Corporation (TMC™) has produced industry-leading trade magazines and events focused on technology and telecommunications. TMC™ publishes Customer Inter@ction Solutions' and INTERNET TELEPHONY™ (http://www.tmcnet.com/it) magazines, as well as the online publications, Planet PDA™ Magazine, BiometriTech™, WiFi Revolution and TMCnet.com™. TMC Labs™ tests new products in its own on-site laboratories and provides factual and unbiased product reviews. TMC also produces INTERNET TELEPHONY™ Conference & Expo; Planet PDA™: The Enterprise PDA Event; BiometriTech™ Conference; and The Global Call Center Outsourcing Summit™. TMCnet.com publishes 25 topical online newsletters.

About Xten Networks, Inc.

Xten Networks, Inc. is a leading provider of high-quality SIP Voice over Internet Protocol (VoIP) software. Xten provides IP Telephony products directly to end users, the Enterprise market, Next-Gen Service Providers (ITSPs & Tier 2), Wireless Internet Service Providers (WISPs), Telephone Companies (TELCOs), and Original Equipment Manufacturers (OEMs).

Xten Networks, Inc. (http://www.xten.com) is a private Nevada company located in Vancouver, Canada.