Tom Jasny Vice President VocalData, Inc.

1. Tom JasnyVice PresidentVocalData, Inc. Capabilities, Convenience, and Cost-Savings Drivers for Hosted PBX Services

2. Terminology History Current Analysis Change Factors Market Technology Overview of Hosted Features Benefits (vs. PBX & Centrex) Market Segments Value Prop for Enterprise Business Case/TCO Conclusions Outline

3. Centrex PBX/IP PBX IP Centrex / Hosted PBX / Virtual PBX Managed PBX PBX Trunking / IP Integrated Access Terminology

4. History of PBX vs. Centrex • Situation Today – • PBX dominates enterprise • Centrex serves very large/small businesses • IP PBX well established • Hosted IP ~ 80,000 lines 19XX 1960 1970 1980 1990 2000… Dark Ages PBXs Digital PBX Hosted IP Telephony Centrex Service IP PBX "Advanced" Centrex

5. Enterprises and service providersalike are eschewing CapExand trimming OpEx Pressure to outsource specializedfunctions Ethernet LAN/WAN infrastructureubiquitous Complex technology becomingredundant PBXs/Class 5 nearing end of life cycle VoIP technology in it's 4th generation Business cases and TCO looking good for nexgen providers What's going on?

6. 6,000 CASA AFME Asia-Pac 4,500 Hosted PBX Lines Europe NA 3,000 1,500 0 2001 2002 2003 2004 2005 2006 2007 The Hosted PBX Market Service Provider Virtual PBX Line Forecast (global) Service Provider Virtual PBX Line Forecast Regional Breakdown Hosted PBX lines (000s) Source: Probe Research • IP Centrex = 48% of all Centrex lines by 2008 • Centrex line decreasing at 4-5% / year, Centrex revenue decreasing at 8.5% • Nexgen revenues growing at 190% CAGR from 2001-2008 Source: Frost & Sullivan Source: Probe Research

7. Complete array of PBX-like business features Includes features such as DID, Speed Dial, Transfer, Do Not Disturb, Hold, Mute, Redial, Call Forward, 3-way Conferencing, Call Waiting Caller ID (Name & Number), blah, blah, blah … Applications and advanced features Conferencing and Desktop Collaboration Unified Messaging (v-mail/e-mail/IM) Web Portals/Web Services Remote Services/Mobility Self-Service Management - Enterprise Administration Auto-attendant - Call Center - IVR VPN – Enterprise Networking Firewall Traversal Communicates with customer-facing endpoints: IADs, LAN/WAN access gateways, IP phones, PDAs and mobile phones Communicates with PSTN-facing gateways and softswitches What are Hosted PBX Services?

8. Core Features

9. Web Portal Directories Web Portal Integrated Voice Mail End-User Web Portals • Access phone features, call management • Unified call directory, visible voice mail and teleconferencing

10. Presence/IM/Voice Integration Unified Messaging/IM Integration • Unique integration of IM/phone presence • Call management based on IM status (and vice versa) • Ability to launch voice conversation, e-mail, file transfer – from IM

11. Mobility - PDA & WAP Interfaces Mobility Solutions • Call disposition via PDA • Mobile call management, directory access, voice mail management, etc.

12. Service Branding • Brandable by Service Provider • Control over graphics, coloring, features • Can be sub-branded by Agents • Alternatively, a custom web portal can be created using SOAP, CORBA and VOISS API with full functionality

13. Professional,efficient call handling capability for front desk personnel GUI interface Ability to direct and process incoming calls Current phone status & caller-on-hold status Point-and-click call routing Point-and-click employee directory Personal productivity through converged features Unified messaging; IM/EM/VM/Presence Web portal for phone management Call disposition Directory Conferencing Visible voice mail Call log Click to call Improved Productivity

14. Value Proposition for the Enterprise Business Segments Small business segment value • currently served by Centrex • Expanded feature set • Self-Service Management • Part of lower-cost, bundled offering • Competitive providers Medium business segment value • currently served by PBX/KTS • New personal productivity services • Self-Service Management • Part of lower-cost, bundled offering • No CapEx; No Maintenance; Lower OpEx Large business segment value • currently served by Centrex • No CapEx; No Maintenance; Lower OpEx • Single network technology • Self-Service Management • Outsourcing opportunity

15. Benefits of Hosted PBX Services

16. With hosted PBX solutions Complete the installation in days Complete the cut-over in hours! Plug in phones Easier Installations for Enterprise To install voice solution for a 50-person business • With traditional PBXs • Complete the installation in weeks • Complete the cut-over in days (reserve the weekend!)

17. Savings on moves, adds, and changes present an even more compelling benefit Typical employee moves desk an average of 1x a year; typical cost ranges from $75 to $135 per change For a 500 person medium-sized business, eliminating this cost through self-registration results in $50,000 annual savings! Ongoing Costs of MACs

18. Monthly Charges for 25 Users $1,682 $1,300 Centrex “Virtual” IP PBX Enterprise Value Proposition • Small business example shows 23% monthly savings with hosted IP PBX service • Key savings is in reduced line charges—with packetized voice, don’t need extra lines for overflow, hunt groups • Voicemail and conferencing are included in basic line charges for hosted IP PBX services Source: IP Centrex Services, Yankee, 12/2000

19. InfoTech study 10/2001 reviewedtotal cost of ownership for 3 solutions: Traditional PBX (IP-enabled) IP PBX Hosted PBX Services New installations, 3-year view 100 and 400 person installations 10%, 20% teleworker, respectively 20 users added in Year 3 Costs addressed: First costs: System, phones, gateways, installation, additional LAN costs, administrator & user training, soft phones, DSL modems, remote modules, local facilities Ongoing costs: IP Centrex line charges, facilities charges (local trunks, PRI, ISDN, DSL/cable), hardware maintenance, space, HVAC, power, backup, insurance, staffing Business disruption costs Comparing the Alternatives

20. Total Cost of Ownership (TCO) Results 100-person Enterprise • IP-enabled PBX shows highest cost • Assumes purchase of new PBX • IP PBX cheaper admin and trunk charges offset higher system costs • Hosted has no upfront system costs, lower maintenance costs, no space reqs • Year 3 cost up due to adds • TCO (3 years) • IP Enabled: $591,513 • IP PBX: $413,883 • Hosted: $277,673 Source: Infotech. Revision 10/2001

21. Total Cost of Ownership (TCO) Results 400-person Enterprise • Similar assumptions with larger installation • Higher % of users are teleworkers; 20% geographically dispersed • TCO (3 years) • IP Enabled: $1,242,079 • IP PBX: $1,282,130 • Hosted: $849,493 Source: Infotech, revision 10/2001

22. PBXs dominate the enterprise marketplace today; Centrex provides service at the margins and is declining IP Telephony technology has matured, creating alternatives to traditional solutions Enterprise customers are deploying IP telephony solutions now IP PBXs are have proven in both the market and the technology Dozens of enterprises are deploying hosted solutions globally IP-based solutions for voice provide significant benefits to the enterprise Reduced connectivity charges Enhanced applications Reduced administration & Productivity improvements No capital expense Hosted PBX solutions present a compelling business case due to the dramatically reduced total cost of ownership, reduced network management costs and cheaper bundled offerings The Verdict is In!

23. Who we are: A VoIP market pioneer founded in 1998 with approx. 75 employees in Richardson, TX What we do: Develop and market "VOISS", a suite of voice applications and services, delivering a rich set of line-side and enhanced features in a IP network Sell to service providers and system integrators, who provide hosted PBX or IP Centrex services to business and residential customers Our investors: Austin Ventures, Trinity Ventures, SAIC Ventures, JP Morgan, Seed Capital and others About VocalData, Inc. Tom Jasny, Vice President, Sales & Service tjasny@vocaldata.com