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PACTOLUS RECEIVES INTERNET TELEPHONY MAGAZINE'S "PRODUCT OF THE YEAR" AWARD FOR 2004

SIPware Broadband Telephony Honored for Outstanding Innovation

Westborough, MA - January 18, 2005 -

Pactolus Communications Software Corporation, a leading provider of SIP-based voice services to service providers, today announced that Technology Marketing Corporation (TMC®)'s INTERNET TELEPHONY® magazine (www.itmag.com) has named Pactolus' SIPware Broadband Telephony, utilized by carriers to deploy residential VoIP services, as a recipient of a 2004 Product of the Year Award. INTERNET TELEPHONY has been the VoIP Authority since 1998T.

Pactolus incorporates the SIP protocol in all of its turnkey applications to deliver IP-based solutions that allow telecommunications carriers and service providers to drive down the cost and accelerate time-to-market of high-value services.

"Pactolus continued its successful track record of deploying innovative SIP-based voice services in high profile customers during 2004," said Rich Tehrani, Group Publisher and Editor-in-Chief of INTERNET TELEPHONY. "Each year INTERNET TELEPHONY magazine bestows its Product of the Year awards on companies that have demonstrated excellence in technological advancement and application refinements. Pactolus has demonstrated to the editors of INTERNET TELEPHONY that its products and services are committed to quality and innovation while addressing the real needs in the marketplace."

"We are honored to receive the 2004 INTERNET TELEPHONY Product of the Year Award," said Ken Osowski, Vice President of Marketing and Product Management at Pactolus. "Pactolus is the only supplier to be recognized by INTERNET TELEPHONY for innovation in the residential broadband telephony product category in 2004. Our large commercial deployments have taken both our applications and our software platform to a new level of capabilities this year, enabling our carrier customers to super achieve their business goals."

About Pactolus Communications Software

Pactolus Communications Software Corporation is the leading provider of SIP-based voice services for today's networks with over 1 billion minutes of monthly network capacity installed worldwide in carrier networks. The company is the first to bring sophisticated, third-party call control capabilities to SIP-based networks. Pactolus offers a suite of pre- packaged IP voice services that can be customized for deployment in any SIP-enabled carrier network called SIPwareT Services, built upon the RapidFLEXT software platform.

The SIPware Services suite enable service providers to deliver multiple, advanced voice applications that are versatile and scalable in a single platform environment. These services include broadband IP telephony, prepaid calling card, post paid calling card, conference calling (all available with an integrated operator assistance module), voice messaging, and custom SCE-built applications. The RapidFLEX software platform includes an application server, service creation environment (SCE), software-based IP media server, NAT traversal server, element management system, subscriber self-service portals, high availability features, and other components in an open, extensible software framework. Pactolus is a venture funded, privately held company headquartered in Westborough, Massachusetts.

About TMC

Celebrating more than 30 years as a leading publisher, Technology Marketing Corporation (TMC®) publishes Customer Inter@ction Solutions® and INTERNET TELEPHONY® magazines, Web portal TMCnet.com, and the online publications SIPT, Speech-WorldT, VoIP DeveloperT, WiFI TelephonyT, WiMAXT, Alternative PowerT and BiometriTechT. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMC produces INTERNET TELEPHONY Conference & EXPO, VoIP Developer ConferenceT and Global Call Center Outsourcing SummitT. TMC offers live and online certification programs through TMC University. TMCnet.com publishes more than 14 online newsletters. Visit www.tmcnet.com for details.

For more information contact:

Ken Osowski
Pactolus Communications Software
508-616-0900 x 328
keno@pactolus.com