Xten Selects Calysto Communications as Agency of Record

Full Range of Public Relations and Media Relations Services will Deliver the Xten Story to a Wider Audience

Santa Clara, CA — July 23, 2004 —

Xten (OTCBB: XNWK) today announced that it has retained the services of Calysto Communications, a public relations firm focused exclusively on the telecommunications and VoIP industries. Calysto will implement a comprehensive public relations campaign for Xten's latest product offering eyeBeam®, a voice and video SIP softphone application for VoIP and multimedia networks.

Atlanta-based Calysto Communications will provide a breadth of public relations services including messaging, executive visibility, trade show support, strategic counsel, and media relations to enable Xten to reach to cable operator and carrier customers. Calysto will utilize its deep experience in the VoIP industry to expand Xten's position in the IP communications' market.

"Through Calysto and its established relationships with the media and analyst community, we intend to extend our reach to brand Xten among our target audiences, the cable operators and telecom carriers," explained Erik Lagerway, president and chief operating officer of Xten. "We believe this partnership will expedite those efforts."

About Calysto

Atlanta-based Calysto Communications is a public relations firm focused on a single market niche - telecommunications. The agency helps wireless, telecom, VoIP, cable and other communications companies effectively create and deliver their own unique messages to their key audiences. Calysto works with start-ups as well as public companies, helping them deploy new technologies, gain leadership positions and influence editorial opinion to positively affect their bottom line. For more information about Calysto Communications, a minority-owned business and registered member of the Small Business Association (SBA), please call +1.404.266.2060 or visit the company?s web site at www.calysto.com

About Xten®

Xten Networks, Inc. is a provider of award-winning, high-quality, carrier-grade SIP-based Voice and Video over IP software and softphones. Xten's goal is to be the primary choice in SIP-based client-side audio and video IP communications software for Telecoms, Cable Providers, Internet Telephony Service Providers and OEMs.

Those who are interested in Xten products should visit http://sales.xten.com On the Web: www.xten.com Visit Erik Lagerway's blog: www.sipthat.com