Xten Releases Second Quarter Revenue Guidance

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 expects revenue for the second quarter ending October 31 to increase approximately 40% compared to the previous quarter ending July 31. The Company plans to report its second quarter results on November 29.

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.