XConnect Acquires IPeerX

iPeerX founder Jeff Pulver Named a Member of the XConnect Advisory Board

Boston, MA, September 12, 2006-XConnect, the world's largest provider of IP Communications Peering and Federation services and the operator of the XConnect Alliance, today announced that it has acquired IPeerX, a leading US based VoIP peering company owned by industry-leader Jeff Pulver's Pulver.com Enterprises . With the acquisition, XConnect will bolster its global VoIP peering presence and significantly increase the size of its ENUM registry of VoIP numbers. Jeff Pulver, founder and CEO of Pulver.com Enterprises will become a member of the XConnect Advisory Board, and Kingsley Hill, President of IPeerX, will head XConnect's Strategic Federation development activities. Founded in 2003, IPeerX was developed around the more than 100 VoIP companies that peer with Free World Dialup, a pioneering Internet communications company established by pulver.com in the mid-1990s and which currently boasts more than 500,000 members in upwards of 180 countries. Members of the IPeerX service are VoIP carriers who exchange VoIP traffic based on multiple protocols, including SIP and H.323. IPeerX provides its advanced services to more than 130 VoIP provider members, and operates one of the largest ENUM registries, representing over four million end users worldwide.

The acquisition of IPeerX comes on the heels of XConnect's acquisition in May of e164.info, the Germany-based Carrier ENUM Exchange. This brings the total XConnect membership to approximately 300 service providers in 30 countries, together contributing over eight million active VoIP numbers to XConnect's ENUM Registry as well as a further 120 million numbers registered for future use. XConnect and IPeerX share the common goal of enabling the full potential of end-to-end IP communications services and combined form the largest neutral ENUM registry for VoIP calling in the world.

VoIP Peering based on ENUM allows service providers to achieve dramatic changes in the economics and quality of their communications services. The customers of a VoIP company enrolled in an XConnect peering federation can enjoy the full promise of IP Communications; free or unlimited calling with hifidelity audio and video conferencing, with the customers of other XConnect federation members. Without peering, such advanced services would be limited to those calls within each individual network. XConnect's ENUM based peering federations enable new settlement approaches, allowing service providers to offer their customers fresh solutions that are not constrained by the per-minute settlement model that has dominated the traditional telephone business for over one hundred years.

XConnect's multilateral peering services provide interconnection to over 300 VoIP providers via a single connection, avoiding the inefficiency of multiple exchange agreements, the costs of PSTN bridging, and the associated loss of quality and service features. The growing acceptance of a federated or multilateral approach to peering is being driven by XConnect's expertise in achieving multi-protocol interoperability and emphasis on identity, security and privacy features.

"VoIP operators are recognizing that peering has tremendous benefits and are leveraging the multi-lateral federation services of XConnect to enhance their features and lower their costs. With the acquisition of IPeerX, and the growth of our ENUM registry, we can extend our secure peering services to larger groups of operators," said Eli Katz, Chief Executive Officer of XConnect. "In creating the definitive global ENUM registry, XConnect enables the development of innovative IP services and delivers new revenue opportunities for Service Providers, while significantly reducing the costs of interconnections. This deal is a win-win for the customers of both companies and the VoIP Industry as a whole." Jeff Pulver, Founder and Chairman of Pulver.com Enterprises said, "VoIP Peering will drive the adoption of the new generation of IP communications including video, voice and messaging. The success of VoIP Peering depends on having a sufficiently large community of service providers - this deal creates an industry player with the critical mass to succeed." "With IP peering federations, the value to each operator and consumer increases with the addition of new participants. Peering federations, and the combination of XConnect and IPeerX in particular, bring efficiency not found in bilateral agreements, bring greater trust and security among peering partners, and most importantly, by connecting VoIP islands, enables operators to offer features only available when there is end-to-end IP connectivity," said Lynda Starr Senior Analyst, IP Communications at Frost & Sullivan. As part of the integration of the two companies, XConnect will expand its North American headquarters in New York under the leadership of telecom and VoIP veteran Mark Benisz who has served as VP Sales Americas since 2005.

About XConnect Global Networks:

XConnect is the world's first and largest provider of 'Plug and Peer' VoIP federation-based interconnection services dedicated to connecting VoIP operators and enabling rich multi-media end to end IP communication. Headquartered in London with offices and facilities in USA, Europe and Asia, XConnect is the largest neutral VoIP peering provider for VoIP operators. XConnect's award-winning solutions comprehensively address protocol interoperability, ENUM directory services, and security. With its strategic technical partner Kayote Networks Inc., XConnect provides ENUM and peering services to over 300 VoIP operators in more than 30 countries, enabling IP calls between VoIP end-users. XConnect was recently selected by the cable industry in the Netherlands to operate the first nation-wide VoIP peering solution and recently acquired the European carrier ENUM exchange, e164.info. XConnect was founded in 2004 by Eli Katz, also co-founder and chairman of the UK's Internet Telephony Service Providers' Association.