Dialogic and Iperia Collaborate to Provide Innovative Video Mail Solution for deltathree

Wednesday, June 15, 2011

Enables deltathree’s subscribers to access video mail from SIP phones

San Jose, CA - June 15, 2011 - Dialogic Inc. (NASDAQ: DLGC), a leading provider of communications technologies that power advanced networks, today announced its collaboration with Iperia, a wholly owned subsidiary of PAETEC Holding Corp. and a leading provider of mobile applications and content delivery, to provide an innovative video mail solution for deltathree, (OTCQB: DDDC), a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers. As a result of the collaboration, deltathree customers can record personal video and voice messages, which can then be sent via email and accessed worldwide. The solution, which is now deployed on deltathree's enhanced SIP network, provides deltathree subscribers with access to video mail from SIP phones, improving usability and subscriber reach.

deltathree's video mail solution utilizes IperiaVX, a next generation United Communication (UC) service delivery platform, which is built on Dialogic® PowerMediaTM Server Software. With this software platform, leading service providers like deltathree are able to quickly create and deploy new video value-added services, including video mail, which enables them to enhance the customer experience, increase average revenue per user, and strengthen customer retention.

"We have a longstanding relationship with Dialogic, and are proud to have worked together to deliver such an innovative video mail solution for deltathree," said Sam Waicberg, CEO of Iperia. "The collaboration between Dialogic and Iperia is a true win-win for service providers such as deltathree, providing them with the means to easily and rapidly offer new and innovative video services to their enterprise and consumer-based customers, ultimately improving customer retention through a rich messaging experience, while increasing their revenue potential."

"deltathree's new video mail offering is a great value-add," said Amos Shahar, Director of Network Operations and Engineering at deltathree. "Our deployment of this joint technology solution allows deltathree to continue to enhance our services and provide new customer focused communications capabilities, which increases our customer satisfaction and further positions deltathree as an innovative leader in the field of next generation communications solutions."

In addition, because Dialogic's PowerMedia Server Software provides advanced video processing functionality, including video transcoding, transrating and transizing for the H.263 and H.264 codecs, the Iperia VX platform enables service providers to deliver a high quality of user experience on 3G and SIP user terminals - increasing customer satisfaction and improving quality of experience for subscribers.

"We have worked together with Iperia for over 10 years, allowing both of our companies to stay ahead of the innovation curve, and we were pleased to team up again on this video mail solution," said Franz-Josef Eberle, Vice President and General Manager, Value Added Services and Cloud Enabling Group at Dialogic. "Our robust software media server, combined with Iperia's next generation platform and messaging applications, provides deltathree with the ability to expand upon its current services to offer video streaming, advertising capabilities and more, all while improving the quality of experience for video mail subscribers."

About Dialogic
For more than 25 years, Dialogic (NASDAQ: DLGC) and its subsidiaries have been providing communications platforms and technology to enterprise and service provider markets. Our portfolio of multimedia processing and call control technologies enables developers and service providers to build and deploy innovative applications without concern for the complexities of the communications medium or network. This empowers our customers to unleash the profit from video, voice and data for advanced networks.

For more information on Dialogic, visit www.dialogic.com. Also, find us on the following social networking sites:

- Dialogic Exchange Network (DEN)
- Facebook
- Twitter
- YouTube

Dialogic is a registered trademark, and PowerMedia a trademark, of Dialogic Inc. or a subsidiary thereof ("Dialogic"). Other trademarks mentioned and/or marked herein belong to their respective owners. Dialogic and its subsidiaries encourage all users of their products to procure all necessary intellectual property licenses required to implement their concepts or applications, which licenses may vary from country to country.

About Iperia
Iperia is a leading provider of mobile applications and content delivery for service providers and enterprises. The company's flagship product, IperiaVX, is a next-generation service delivery platform that powers value added applications consisting of mobile, voice, video, conferencing, and web messaging suites delivered either on-premise or as a cloud-based solution. Established in 1997, Iperia's products are deployed globally and have a worldwide network of distribution partners. For more information about Iperia, please visit www.Iperia.com.

About deltathree
Founded in 1996, deltathree, Inc. is a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers. Supporting tens of thousands of active users around the world, deltathree serves customers through its service provider and reseller channel and its direct-to-consumer channel. deltathree's advanced solutions offer service providers and resellers a full spectrum of private label IP-based digital voice and video products and services, as well as a back-office suite of services. Utilizing advanced Session Initiation Protocol (SIP) technology, deltathree provides all the components to support a complete VoIP service deployment. deltathree's direct-to-consumer channel consists of the joip Mobile, joip and iConnectHere direct-to-consumer offerings.

For more information about deltathree, please visit our website at www.deltathree.com.

For more information about joip Mobile, please visit our website at www.joipmobile.com.

For more information about joip, please visit our website at www.joip.com.

For more information about iConnectHere, please visit our website at www.iconnecthere.com.

Dialogic Safe Harbor Statement

This press release may contain forward-looking statements regarding future events that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. These forward-looking statements involve risks and uncertainties, as well as assumptions that if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include but are not limited to, potential sales of Dialogic media server products and services, growth of our business as a result of the deltathree offering(s), and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Dialogic's business is set forth in the "Risk Factors" section of our 10-K for the year ended December 31, 2010 as filed with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

deltathree Safe Harbor Statement

Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect deltathree's business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are: our ability to obtain additional capital in the near-term to finance operations; our ability to reduce our costs and expenses and expand our revenues; our ability to retain key personnel and employees needed to support our services and ongoing operations; our dependence on a small number of key customers for a significant percentage of our revenue; decreasing rates of telecommunications services; the public's acceptance of VoIP telephony, and the level and rate of customer acceptance of our new products and services; the competitive environment of Internet telephony and our ability to compete effectively; fluctuations in our quarterly financial results; our ability to maintain and operate our computer and communications systems without interruptions or security breaches; our ability to operate in international markets; our ability to provide quality and reliable service, which is in part dependent upon the proper functioning of equipment owned and operated by third parties; the uncertainty of future governmental regulation; our ability to successfully seek the return of substantially all of the funds seized by the Department of Homeland Security; our ability to protect our intellectual property against infringement by others, and the costs and diversion of resources relating to any claims that we infringe the intellectual property rights of third parties; our ability to comply with governmental regulations applicable to our business; the need for ongoing product and service development in an environment of rapid technological change; and other risks referenced from time to time in our filings with the SEC and available on the Internet at http://www.sec.gov. Except as required under the federal securities laws and the rules and regulations of the SEC, deltathree does not have any intention or obligation to update publicly any forward-looking statements after the distribution of this news release, whether as a result of new information, future events, changes in assumptions or otherwise.


Press Contacts:
Kristen Seely

Marie Browning

Erik Knettel
deltathree Investor Relations