XConnect raises $2 million in funding round

~ appoints Ohad Finkelstein, former president and CEO of Interoute, to the board of directors ~

London, UK (September 19, 2005) – XConnect, the leading VoIP peering company, today announced it has completed its first round of post-launch funding of $2 million.

XConnect, which launched in February 2005, has already acquired ITSP members servicing over one million VoIP subscribers in 15 countries on four continents. The investment will further accelerate its member acquisition rate and consolidate its position.

XConnect has also announced the appointment of Ohad Finkelstein to the company’s board. Ohad is a technology veteran and investor with over 20 years of international business experience. He served as chairman, president, and CEO of the Interoute Telecom Group, the largest pan-European network and service provider. He now takes active role as board member in helping successful technology companies such as Qpass Inc. develop into new markets. Ohad previously held senior management positions at companies including VocalTec Communications Ltd., Eurocom Communications Ltd., and Packard Bell Electronics.

Ohad Finkelstein, director at XConnect said: “XConnect is emerging as a significant catalyst in accelerating the spread of VoIP globally. It has successfully resolved many of the technical and commercial complexities of interconnecting disparate IP communications entities, a key challenge if VoIP is to supercede the PSTN. I look forward to helping XConnect accelerate its growth and reinforce its market-leading position.”

Eli Katz, founder and CEO at XConnect said: “Ohad’s unique blend of technical, commercial and corporate expertise will enhance XConnect’s management team at one of the most exciting times for our industry. His involvement and our successful funding round demonstrate our unique position in the VoIP peering sector, as demand for simple 2 and secure VoIP interconnection increases in line with the huge proliferation of ITSPs globally.”

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Note to editors

About XConnect Global Networks: XConnect is the world's first and largest provider of 'Plug and Peer' VoIP interconnection services dedicated to connecting ITSPs and enabling rich multi-media end to end IP communication. With offices and PoPs in USA, Europe and Asia, XConnect is the largest neutral provider of VoIP peering for ITSPs. XConnect’s solution comprehensively addresses interoperability, ENUM directory services, and security. XConnect interconnects leading ITSPs in 15 countries, allowing free IP calls to over a million VoIP end-users. The company recently received industry recognition in the 2005 Pulver100 List.

XConnect was founded in 2004 by Eli Katz, also co-founder and chairman of the UK’s Internet Telephony Service Providers’ Association. In early 2004, after working for a decade in senior positions in the telecoms industry, he envisioned how the IP communications industry could move forward and challenge the dominance of the legacy PSTN. He worked with industry leaders and partners in Europe and USA to design, develop and implement the XConnect vision. Eli is also the author of several patent pending VoIP directory and security systems.

XConnect is headquartered in London.
www.xconnect.net

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